Lecture 4

Size of business
organization
 Contents

1. Size of business organization in the

UK

2. Size of companies in Vietnam

 1. Size of business
organization in the UK
 Organizations by size

• There are various definitions for statistical purposes, depending upon the
industry being considered, on the grounds that what is small in one industry might
be large in another.

• The EU in 1994 recommended to its members that they use ‘less than 250
employees’ as the definition of a small to medium-sized enterprise (SME)
 Criteria to define the size
In EU
(Tổng nguồn vốn/ Tài sản)
Annual balance sheet
total

(Doanh số thực tế) (Tổng số nhân viên)

Actual Turnover Headcount

Fields of business
 The 10 largest companies in
the world by turnover, 2017

Source: Fortune Global 500, 2017.

 Size of Company in EU

The EU SME definition

Source: Evaluation of the user guide to the SME Definition, 2014, http://ec.europa.eu/docsroom/documents/5766/attachments/1/translations/en/renditions/pdf
 Employment in the UK
Share of employment of SMEs (%), UK, 2016

Source: ‘Business Population Estimates, 2016’, Department for Business, innovation and Skills.
2. Size of companies in
Vietnam
 Vietnam

Criteria to define the

size?
Vietnam Companies structure
by SIZE

(Lan, 2019)
 Criteria to define the size

(Tổng nguồn vốn)

Total capital

(Tổng doanh thu) (Tổng số nhân viên)

Total revenue Total employees

Lĩnh vực kinh doanh

Fields of business
 Filed of Business

What is the field of business?

 Size depends on
Field of Business
Total capital

Total revenue Total employees

(Nông nghiệp)
Agriculture
Lĩnh vực kinh doanh
(Thủy sản và Lâm nghiệp)
(Thương Mại và Dịch vụ )
Trade
Fields of Fishery and Forestry
and Services business
(Công nghiệp và Xây dựng)
Industry and Construction
 Table of Sizes in Vietnam
(Decree 80/2021/NĐ-CP)

Criteria of Agriculture, Forestry and Fishery, Industry Trades and Services

Size and Construction
Micro Small Medium Large Micro Small Medium Large
Total <= <= <= > <= persons <= persons <= >
employees persons persons persons persons persons persons
(Social
insurance
payment)
Total <= <= billion <= billion > billion <= <= <= billion > billion
Revenue billion VND VND VND billion VND billion VND VND VND
VND
Total Capital <= <= billion <= billion > billion <= <= <= billion > billion
billion VND VND VND billion VND billion VND VND VND
VND
 Table of Sizes in Vietnam
(Decree 80/2021/NĐ-CP)

Criteria of Agriculture, Forestry and Fishery, Industry Trades and Services

Size and Construction
Micro Small Medium Large Micro Small Medium Large
Total <= 10 <= 100 <= 200 > 200 <= 10 <= 50 <= 100 > 100
employees persons persons persons persons persons persons persons persons
(Social
insurance
payment)
Total <= 3 <= 50 <= 200 > 200 <= 10 <= 100 <= 300 > 300
Revenue billion billion VND billion VND billion VND billion VND billion VND billion VND billion VND
VND
Total Capital <= 3 <= 20 <= 100 > 100 <= 3 <= 50 <= 100 > 100
billion billion VND billion VND billion VND billion VND billion VND billion VND billion VND
VND
 Find out the data

How to find the data:

TOTAL CAPITAL
 Find the Total capital?
(Tổng nợ)
(Tổng Nguồn vốn )
Total liabilities
The
Total capital = + Balance sheet
(Tổng vốn chủ sở hữu)
(Bảng Cân đối kế toán)
Total owner equity

Total employees The

Total revenue
Annual Report
(Báo cáo thường niên)

Fields of business
 The Annual Report

An annual report
• The report of a company's directors to shareholders
• The copies of the company's summary of assets, summary financial statements,
and other information that the directors are required by law to disclose to
shareholders.
• A copy of the annual report is sent to all shareholders before the company's general
meeting of shareholders.
(Vietnambiz, 2019)
 Find out the data

How to find

Annual Report?
Examples of finding FPT Telecom
Annual report

https://fpt.com.vn/vi/n
hadautu/cong-bo-
thong-tin/bao-cao-
thuong-nien

(FPT Telecom, n.d.)

 The Balance sheet

What Is a Balance Sheet?

• A financial statement that reports a company's assets, liabilities and shareholders'
equity at a specific point in time, and provides a basis for computing rates of return and
evaluating its capital structure.

• It is a financial statement that provides a snapshot of what a company owns and owes,
as well as the amount invested by shareholders.
(FERNANDO, 2021)
 Total asset = Total capital

The Balance sheet

Total capital = Total Liabilities + Total Owner’s equity

Source: Build the better Business Case, n.d. Encyclopedia. [Online] Available at: https://www.business-case-analysis.com/balance-sheet.html [Accessed 09 6 2021].
 Balance sheet Example

Source: My Accounting course, n.d. Pro Course. [Online] Available at: https://www.myaccountingcourse.com/financial-statements/balance-sheet [Accessed 09 6 2021].
 What is owner equity?

Total capital (Nguồn vốn) = Total Liabilities (Tổng Nợ) + Owner

equity (Vốn chủ sở hữu)

Owner equity (Vốn chủ sở hữu) = Common stock (cổ phiếu phổ
thông) + Retained Earnings (lợi nhuận giữ lại, không phân phối cho
cổ đông)
 Find out the data

Find: TOTAL CAPITAL OF A

VIETNAMESE COMPAMY
 Find out the data

How to find the data:

TOTAL REVENUE
 Find the Total revenue?

Total capital

The
Income statement Total employees
(Báo cáo kết quả hoạt động kinh doanh)
Total revenue

The
Annual Report
(Báo cáo thường niên) Fields of business
 The Income statement

What is Income statement ?

• One of the three important financial statements used for reporting a company's financial
performance over a specific accounting period, with the other two key statements being
the balance sheet and the statement of cash flows.
• Also known as the profit and loss statement or the statement of revenue and expense, the
income statement primarily focuses on the company’s revenues and expenses during a
particular period.
(CHEN, 2021)
 Net income

• Income before tax (lợi nhuận trước thuế) = Revenue (doanh thu) –
Cost (chi phí)

• Net income (lợi nhuận sau thuế) = Income before tax –

Corporation tax (thuế thu nhập doanh nghiệp)
Distribution of Net income
Net Income (Lợi nhuận sau thuế)

9%
10%

Retained earnings
23% 58% Investment Funds
R$D Funds
Dividends
Source: CHEN, J., 2021. Corporate Finance. [Online] Available at: https://www.investopedia.com/terms/i/incomestatement.asp [Accessed 07 6 2021].
 Find out the data

How to find the data:

TOTAL EMPLOYEES
 Find the Total employees?

Social
Total capital
insurance
payment

The
Total Annual Report
Total revenue employees (Báo cáo thường niên)

Fields of business
THE END